Regulatory Capital

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Regulatory Capital

13.     Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards and a Capital Conservation Buffer (“CCB”). As of June 30, 2023, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Bank was 6.33% and 6.37% at June 30, 2023 and December 31, 2022, respectively.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	915,247	10.67	%	$	915,628	10.56	%
Requirement to be well-capitalized		428,869	5.00			433,667	5.00
Excess		486,378	5.67			481,961	5.56
Common Equity Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		432,313	6.50			431,734	6.50
Excess		482,934	7.26			483,894	7.29
Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		532,077	8.00			531,365	8.00
Excess		383,170	5.76			384,263	5.79
Total risk-based capital:
Capital level	$	953,277	14.33	%	$	954,457	14.37	%
Requirement to be well-capitalized		665,097	10.00			664,206	10.00
Excess		288,180	4.33			290,251	4.37

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of June 30, 2023, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at June 30, 2023 and December 31, 2022 was 5.07% and 5.25%, respectively.

Set forth below is a summary of the Holding Company’s compliance with banking regulatory capital standards.

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	735,810	8.56	%	$	746,880	8.61	%
Requirement to be well-capitalized		429,905	5.00			433,607	5.00
Excess		305,905	3.56			313,273	3.61
Common Equity Tier I risk-based capital:
Capital level	$	689,876	10.38	%	$	698,258	10.52	%
Requirement to be well-capitalized		432,201	6.50			431,635	6.50
Excess		257,675	3.88			266,623	4.02
Tier I risk-based capital:
Capital level	$	735,810	11.07	%	$	746,880	11.25	%
Requirement to be well-capitalized		531,940	8.00			531,243	8.00
Excess		203,870	3.07			215,637	3.25
Total risk-based capital:
Capital level	$	963,840	14.50	%	$	975,709	14.69	%
Requirement to be well-capitalized		664,925	10.00			664,054	10.00
Excess		298,915	4.50			311,655	4.69